Gavin’s grandfather, Mr. Jones, has just turned 90 years old and is applying for a lifetime annuity that will pay $10,000 per year, starting 1 year from now, until he dies. He asks Gavin to analyze it for him. Gavin finds that according to statistical summaries, the chance (probability) that Mr. Jones will die at any particular age is as follows:. age90 91 92 93 94 95 96 97 98 99 100 101 probability 07 08 09 10 10 10 10 10 10 07 05 04
Then Gavin (and you) answer the fullowing questiuns:.
(a) Wha is the life expectancy of Mt Jones?
(b) what is uhe present value of an annuity at 8% interest that has a lifetime equal to Mr Jones's litc expectancy7 (For an annuity of a nonintegral number of years, use an averaging metliud )
(c) What is the expected present value of the annuity?

5. real versus nominal gdp consider a simple economy that produces two goods: cupcakes and muffins. the following table shows the prices and quantities of the goods over a three-year period. year cupcakes muffins price quantity price quantity (dollars per cupcake) (number of cupcakes) (dollars per muffin) (number of muffins) 2014 2 115 5 175 2015 4 150 2 180 2016 1 100 2 160 use the information from the preceding table to fill in the following table. year nominal gdp real gdp gdp deflator (dollars) (base year 2014, dollars) 2014 2015 2016 from 2015 to 2016, nominal gdp , and real gdp . the inflation rate in 2016 was . why is real gdp a more accurate measure of an economy's production than nominal gdp? real gdp does not include the value of intermediate goods and services, but nominal gdp does. real gdp measures the value of the goods and services an economy produces, but nominal gdp measures the value of the goods and services an economy consumes. real gdp is not influenced by price changes, but nominal gdp is.